RBA Focus December 2016 | Page 12

Chairman’s Corner Michael Lafferty were sold, as was the insurance business. The new ING is a mixed corporate and retail bank). I first became interested in banking and retail banking in particular back in the late 1970s, when I took over as banking correspondent of the Financial Times newspaper in London. This brought me into contact with a number of new thinkers who were fascinated by the power and potential of the consumer banking sector – people like: • John Reed, who had the vision to create a global consumer business and went on to become CEO of Citibank. ( Sadly, a subsequent merger with the Travelers insurance and investment bank to create a universal bank proved disastrous, eventually resulting in Reed’s resignation. Today Citi is a much smaller bank, still recovering from the crisis). • Eckart van Hooven, the first retail banker to become a member of Deutsche Bank’s board of management. Now deceased, he would be horrified by what has become of his bank. • Dee Hock, the visionary thinker behind Visa, the global payments network. • Stefan Kaminsky, the bearded German humanist who created KKB, the world’s first consumer-only commercial bank and was later to write the influential thought leadership report titled “Real Banks for Real People” that we first published in 1989 and is still selling. Over the years I also encountered some fascinating banks, including: • Hans Verkoren and Dick Harryvan, the founding CEOs of ING Direct – the consumer-only bank that grew into a global giant by building greenfield businesses in the world’s largest and most developed economies. (ING Direct was a casualty of the crisis: the parent company was bailed out by the Dutch government, key ING Direct businesses built up by a German emigrant who also provided schools and healthcare for the staff in what came to be known as “Cidede de Deo”, the City of God” All influenced me greatly and taught me that there really is a world market for consumer banking – because people have far more in common than divides them – and that the provision of these services is a sacred responsibility that should only be the prerogative of professionals who will always act in an ethical way in the best interests of customers. For further insight into the fascinating thinking of several of these retail banking icons, click on the following links: 1. John Reed 2. Dick Harryvan - Banco Popular in Spain that had decided to focus on SMEs and consumers rather than large corporates. Here I encountered ‘principles-based’ banking in action for the first time - Handelsbanken in Sweden, which devolved all power to the branches and focused on the overall banking relationship - Bradesco in Brazil, a giant of a bank 3. Eckart van Hooven 4. Dee Hock 5. Stafan Kaminsky Michael Lafferty is Chairman of Lafferty Group, an international research, education and publishing house with a worldwide clientele. Michael founded Lafferty Group in 1981, after 6 years as a journalist at the Financial Times, where he worked on the FT’s LEX team and the City Desk, covering banking and accountancy. Michael is a Fellow of the Institute of Chartered Accountants in England and Wales. NKER BA CERTIFIE THE RETAIL BANKER’S OATH RETAIL D I declare that as a r etail banker I will act with integrity in the interests of bank stakeholders and society at large. I will prioritise clients and advise them to the best of my ability. I will comply with all laws, regulations and codes of conduct that apply to me as a retail banker. I will maintain strict client confidentiality and hold myself accountable. I will not abuse my position, or the knowledge obtained in it. I will make a sincere effort to preserve and promote trust in the banking sector, and will honour the profession of banker. CRB